§ 41. Mr. Hollandasked the Chancellor of the Exchequer what was the cost to his Department of the collection of value added tax for the last 12 months for which figures are available; and what was the cost for the preceding 12 months.
§ Mr. Robert SheldonAs recorded on page 14 of the Report of the Commissioners of Her Majesty's Customs and Excise for the year ended 31st March 1976, a copy of which is in the Library of the House, the estimated cost of administering VAT in that year was £70 million, and £50 million in the previous year.
§ Mr. Greville Jannerasked the Chancellor of the Exchequer whether he will exempt maintenance contracts for stair-lifts for disabled people from value added tax.
§ Mr. Robert SheldonNo. I am afraid that in a broadly based tax such relief could not be justified.
§ Mr. Crawfordasked the Chancellor of the Exchequer what would be the loss to the Exchequer if VAT were reduced from 12½ per cent. to 8 per cent, on caravans.
§ Mr. Robert SheldonA separate estimate for the loss of revenue on caravans has not been made, but taking boats, aircraft and caravans together—Groups 3 and 4 of the Higher Rate Schedule—the loss would be about £5 million in a full year, of which caravans would probably account for rather less than half.
§ Mr. Knoxasked the Chancellor of the Exchequer if he can now give his revised estimate of the total amount of input tax reimbursed to traders for value added tax purposes during the year 1975–76.
§ Mr. Robert SheldonI understand the hon. Member is asking for the total amount of deductible input tax whether reimbursed or offset against VAT liabilities. As recorded in Table 47 of the Report of the Commissioners of Her Majesty's Customs and Excise for the year ended 31st March 1976, a copy of760W which is in the Library of the House, deductible input tax charged on imported goods and goods from bonded warehouses was £1,942.8 million and other tax deductible was £9,403.8 million making £11,346.6 million in total. There has been no revision of the figures.
§ Mr. Hollandasked the Chancellor of the Exchequer what was the gross revenue from value added tax during the last 12 months for which figures are available; and what was the net revenue after deduction of costs of collection for the same period.
§ Mr. Robert SheldonIt is assumed that by gross revenue the hon. Member means receipts of VAT net of repayments to registered persons but before deduction of costs of administration. On this basis VAT revenue in the financial year 1975–76 was £3,454.9 million, and with the deduction of estimated costs of administration, about £3,385 million. Estimates of costs of administration are made only for financial years but more recent figures of VAT receipts are published in Financial Statistics and in the Monthly Digest of Statistics.
§ Mr. Hollandasked the Chancellor of the Exchequer how many civil servants were employed in the collection and administration of value added tax at the latest date for which figures are available.
§ Mr. Robert SheldonCurrently it is estimated that about 11,300 staff in Her Majesty's Customs and Excise are employed in the collection and administration of VAT including car tax.